Mortgage repayments on $300k to $1 million: monthly, fortnightly and weekly tables

The table shows monthly principal and interestHome Loans / Loan decisionsPrincipal and interest vs interest-onlyUnderstand repayment-type trade-offs before choosing an interest-only or principal-and-interest structure.Open page repayments over 30 years at three illustrative rates. The rate stays the same for the whole loan and no fees are included.

The rates are a band around the RBA's published average for new owner-occupier variable loans, which was 6.2% for loans funded in September 2026 (RBA statistical table F6, published 6 November 2026). The RBA raised the cash rate target by 0.25 percentage points to 4.60% on 30 September 2026 and by another 0.25 percentage points to 4.85% on 4 November 2026, so rates offered today may be higher than that average.

None of these rates is an emoney rate or a lender offer. Lenders set their own rates based on the loan, the borrower and the property.

There are two common ways to show a fortnightly or weekly repayment. They look similar but have different effects on how long the loan runs.

Same yearly total: the monthly repayment multiplied by 12, then divided by 26 for fortnightly or 52 for weekly. You pay the same amount each year as a monthly borrower, and the loan still runs for about 30 years. A fortnightly schedule set up to clear the loan in exactly 30 years gives almost the same figure. On $600,000 at 6.25% it is $1,704 a fortnight.

Half the monthly amount: you pay half the monthly repayment every fortnight, or a quarter every week. There are 26 fortnights in a year, so this adds up to 13 monthly repayments a year instead of 12. ASIC MoneySmart describes this as the equivalent of an extra month's repayment each year.

On $600,000 at 6.25%, paying $1,847 a fortnight clears the loan in about 24 years and 4 months instead of 30 years. Total interest falls from $729,949 to $567,778, which is $162,171 less. That assumes interest is charged each fortnight at 6.25% divided by 26 and the rate never changes. Lenders calculate and charge interest in their own way, so your own result will differ a little.

Ask your lender which method a fortnightly or weekly option uses before you switch.

A shorter term means higher repayments but less interest overall. A longer term lowers the repayment and raises the total interest.

At 6.25%, a 25-year term costs $264 a month more than a 30-year term on $600,000. Over the life of the loan it saves $142,544 in interest, if the rate stays the same and every repayment is made on time.

MoneySmart makes the same point in its guide to choosing a home loan and suggests choosing the shortest loan term you can afford. Some borrowers instead take a 30-year term for the lower required repayment and then pay extra when they can. Check that the loan allows extra repayments and whether any fees apply.

Interest-onlyHome Loans / Loan decisionsPrincipal and interest vs interest-onlyUnderstand repayment-type trade-offs before choosing an interest-only or principal-and-interest structure.Open page repayments are lower at the start because they cover only the interest. The balance does not fall, and repayments rise when the interest-only period ends.

This example uses the same 6.25% rate for both loans so the repayment typeHome Loans / Loan decisionsPrincipal and interest vs interest-onlyUnderstand repayment-type trade-offs before choosing an interest-only or principal-and-interest structure.Open page is the only difference. In practice, interest-only rates can be higher. The RBA's September 2026 averages for new owner-occupier loans were 7.0% for interest-only and 6.1% for principal and interest. At 7.0%, the interest-only repayment on $600,000 would be $3,500 a month.

With a five-year interest-onlyHome Loans / Loan decisionsPrincipal and interest vs interest-onlyUnderstand repayment-type trade-offs before choosing an interest-only or principal-and-interest structure.Open page period, the loan then has 25 years left to repay the full $600,000. The repayment rises to $3,958 a month, which is $264 more than a 30-year principal and interest loan from the start. Total interest over the 30 years is $774,905, compared with $729,949, so $44,956 more at the same rate.

MoneySmart notes that repayments increase after the interest-onlyHome Loans / Loan decisionsPrincipal and interest vs interest-onlyUnderstand repayment-type trade-offs before choosing an interest-only or principal-and-interest structure.Open page period and that the higher amount may not be affordable. Plan for the later repayment as well as the starting one.